"It is like a dark cloud has entered our building," H&J Smith’s managing director says.
Invercargill residents and H&J Smith staff were emotional and surprised yesterday with the announcement of the potential closure of the long-running department store business, and H&J Smith managing director Jason Smith said he shared the sentiments.
He described the decision as one of toughest he had to make, as not only was it a burden to staff, but also to his family, as they had been running the business for 123 years in Southland.
"I’ve worked here most of my life... I’ve got lots of good friends in this business and lots of good friends through this business. So that makes it very difficult."
The proposal to close the department stores in Invercargill, Gore and Queenstown is now out for consultation for four weeks - and may take into consideration proposals from interested third parties or staff who wanted to continue to run parts of the business independently, such as Gun City, Paper Plus and school uniforms sales, he said.
H&J Smith employed about 220 people - 190 in Invercargill, four in Gore and 20 in Queenstown.
A meeting was held with them on Wednesday night to disclose the proposal and the next steps.
"The nicest way to describe it was it seemed like a dark cloud had entered the building," he said.
‘There’s a lot of people who’ve worked with us many years and they are really, really hurting today.
"I think there was a lot of outpouring of emotion ... but I think the realisation now is going to be very difficult for people."
The business truly did not know where the consultation might head, and no decision had been made yet, he said.
"We’ve outlined a process and a path that it could go down.
"But I think it’s going to end up quite different to what we anticipated, which is the whole point of consultation, and that’s what we’re looking for."
H&J Smith chief executive John Green said they would work with staff on an individual basis.
"There’s a lot of people’s lives at stake, in terms of their lifestyle, they all have a story.
"They all have unique situations and our job is to work through those with them, [and be] as supportive and compassionate as we can be."
He spoke with the team yesterday morning and was impressed with its resilience.
Mr Green was surprised as it seemed that everyone understood the reasons behind the decision, and was hopeful of a potential better outcome after the consultation, he said.
"They’re incredibly stoic."
Invercargill mayor Nobby Clark would not make any comment until a final decision was made.
"I’m saddened to see what H&J Smith is facing after 123 years ... I can’t make any comment about going forward because they are not clear yet about their future."
Invercargill resident Nigel Finnerty said it was a "bit of a shock" to hear the news.
"It’s been around for all of my life and everybody else in Southland’s lives - it’s just part of the fabric here ... it would be sad [to see it close]."
If the proposal goes ahead, online sales and laybys would be discontinued on July 1 and the stores closed on November 18.
